If the difference between Simple Interest and Compound Interest on a certain…
2026
If the difference between Simple Interest and Compound Interest on a certain amount of money deposited at the rate 12% per annum for two years is ₹72, then find the amount of money deposited (i.e. principal amount).
- A.
₹5700
- B.
₹5500
- C.
₹5200
- D.
₹5000
Attempted by 7 students.
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Correct answer: D
The difference between Compound Interest and Simple Interest for 2 years is given by the formula P(R/100)².
Given Difference = ₹72 and Rate (R) = 12%. Substituting the values: 72 = P(12/100)².
This simplifies to 72 = P × 0.0144. Solving for P: P = 72 / 0.0144 = ₹5000.